Bitcoin Slips Below Key Support as Dollar Strengthens Ahead of Powell Speech

Market Overview - Bitcoin (BTC) dipped below a key support level, falling over 1% to $121,500, which reversed a previous spike and penetrated the 200-hour simple moving average [1] - Other major cryptocurrencies such as BNB and ETH also experienced declines of over 3% [1] - The CoinDesk 20 Index fell 1% to 4,155 points [1] ETF Inflows - U.S.-listed spot ETFs saw strong inflows, pulling in $426 million on Wednesday, continuing a trend of robust daily inflows over the past week [2] Dollar Strength - The dollar index rose to 99.10, the highest level since August 1, impacting the appeal of dollar-denominated assets like Bitcoin and gold [3] - Gold briefly dropped to $4,000 per ounce before recovering above $4,030 per ounce [3] Federal Reserve Insights - Federal Reserve Chair Jerome Powell is scheduled to speak at the Community Bank Conference, with traders looking for cues on monetary policy amid a government shutdown affecting economic data releases [4] - Minutes from the Federal Reserve's September meeting expressed concerns over the government shutdown, indicating that policymakers may lack key economic metrics for decision-making [5] - The committee showed caution regarding inflation, with a majority favoring further rate cuts while expressing concerns about sticky inflation [6] Rate Cut Discussions - A majority of Federal Reserve participants anticipated at least two more rate cuts this year, potentially lowering the benchmark rate to a range of 3.50-3.75% [6] - Discussions highlighted a weakening labor market and early signs of potential inflation reacceleration, although there was general alignment that trade tariffs would not be a lasting inflation source [7]